JSE stays firmer led by banks

18 Feb 2008 09:32 - Tiisetso Motsoeneng

South African stocks were sharply higher at midday on Monday led by banks ahead of Absa's year-end earnings, while stronger overseas markets and firm metal prices spurred broad-based gains, traders said. By noon, the broader all-share index had gained 1,27% to 28 867,61, lifted mainly by a 2,36% gain in banks.

South African stocks were sharply higher at midday on Monday led by banks ahead of Absa’s year-end earnings, while stronger overseas markets and firm metal prices spurred broad-based gains, traders said.

By noon, the broader all-share index had gained 1,27% to 28 867,61, lifted mainly by a 2,36% gain in banks.

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Financials were up 1,62% and industrials added 0,87%. Resources were up 1,42% while the gold and platinum mining indices improved 0,86% and 0,42% respectively.

The rand was bid at 7,63 to the US dollar from 7,66 when the JSE closed on Friday, while gold was quoted at $904,13 a troy ounce from $912,93/oz at the JSE’s last close.

“There’s a little bit of comfort coming from firm commodity prices and stronger overseas markets,” one trader said.

Banks were the blue chips’ top gainers at midday, recovering from oversold positions and in anticipation of strong results from Absa on Tuesday, traders said.

“Banks are 20% off the peak achieved in October last year. There’s still a long way to go,” the trader said.

Absa climbed 3,17%, or R3,25, to R105,75, Standard Bank surged 3,31%, or R2,95, to R91,95, Nedbank added 1,17%, or R1,27, to R110,27 and FirstRand was up by the same percentage margin, or 20 cents, to R17,30.

Among mining counters, resource giant Anglo American climbed 2,11%, or R9,50, to R459,50 and rival BHP Billiton gained 1,78%, or R4,14, to R236,50.

Petrochemicals group Sasol fell 90 cents to R375.

Gold miner AngloGold Ashanti inched up R1 to R258 and Gold Fields improved 1,45%, or R1,48, to R103,49.

Platinum producer Anglo Platinum was up 1,90%, or R21,50, at R1 155,50, Lonmin gained 1,94%, or R9,60, to R503,20 but Impala Platinum edged down R1 to R310.

Construction stocks rallied along with Group Five, which posted strong results just before the market opened.

Shares in company rose 4,21%, or R2, to R49,50. Earlier it reported a 45% rise in fully diluted headline earnings per share to 145 cents for the six months ended December from 100 cents a year ago.

An interim dividend of 45 cents per share was declared, up from 30 cents a year earlier.

Elsewhere, brewer SABMiller was up 1,22%, or R2,02, to R167,91 and embattled consumer brands maker Tiger Brands recovered 2,68%, or R3,50, to R134. - I-Net Bridge